Telecom Italia 2009 Results
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Transcript of Telecom Italia 2009 Results
Telecom Italia Group 2009 Results (Full Package)
1
These presentations contain statements that constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this
presentation and include statements regarding the intent, belief or current expectations of the customer base,
estimates regarding future growth in the different business lines and the global business, market share,
financial results and other aspects of the activities and situation relating to the Company and the Group.
Such forward looking statements are not guarantees of future performance and involve risks and uncertainties,
and actual results may differ materially from those projected or implied in the forward looking statements as a
result of various factors.
Forward-looking information is based on certain key assumptions which we believe to be reasonable as of the
date hereof, but forward looking information by its nature involves risks and uncertainties, which are outside our
control, and could significantly affect expected results.
Analysts are cautioned not to place undue reliance on those forward looking statements, which speak only as of
the date of this presentation. Telecom Italia S.p.A. undertakes no obligation to release publicly the results of any
revisions to these forward looking statements which may be made to reflect events and circumstances after the
date of this presentation, including, without limitation, changes in Telecom Italia S.p.A. business or acquisition
strategy or planned capital expenditures or to reflect the occurrence of unanticipated events. Analysts and
investors are encouraged to consult the Company's Annual Report on Form 20-F as well as periodic filings made
on Form 6-K, which are on file with the United States Securities and Exchange Commission.
Safe Harbour
2
TI Group Main Achievements
Focus on Domestic Business
Focus on TIM Brasil
Appendix
Agenda
3
TI Group FY09 Progress Report
Focus on Core Markets:
Domestic
&
Brazil
Financial Discipline
NFP Adj.: 33,949 mln € at YE09
(-577 mln € vs YE08)
HanseNet Disposal: 0.9 bln € Net Debt
Reduction in Feb.’10
Operating Free Cash Flow: 6.3 bln € (+12% YoY)
Organic Domestic Ebitda: 10.1bln € (-2.1% YoY)Organic Ebitda Margin: 46.5% (+2.3 p.p. YoY)
Domestic Cash Cost Efficiencies: 0.9 bln €
TIM Brasil Ebitda: 1,289 mln € (+9.6% YoY) Ebitda Margin: 25.7% (+2.3 p.p. YoY)
2009 DPSOrd.: 5.0 €/centsSav.: 6.1 €/cents
TARGET REACHED
TARGET REACHED
TARGET REACHED
TARGET REACHED
4
Operating FCF % OFCF on Revenues
Euro mln, Reported data
19.4%
23.2%
2008 2009
+3.8 p.p.5,636
6,298
2008 2009
+662
Improved Operating Free Cash Flow
Figures considering HanseNet classified as Discontinued Operations.
5
TI Group Improved Profitability: Organic Results vs. 2008
EBITDA % on Revenues
2008 2009
RevenuesEuro mln, Organic data, %
-1,625 mln €-5.6%
2008 2009
-3.7%
-3.7%
-5.6%
-9.1%
27,18028,805
IIQ
IQ
IIIQ
IVQ
6,5276,780
6,8977,165
6,7707,174
6,9867,686 IVQ
2,845
2,799
3,002
2,733
39.5%
41.7%+2.2 p.p.
IIQ
IQ
11,32711,379-52 mln €
-0.5%
+1.8%
-2.4%
-0.4%IIIQ
-0.7%
2,776
2,848
2,990
2,713
Enhanced Revenues Mix
Service revenues decrease 4.2% yoy
Handsets’ revenues decrease 22.2% yoy
Improved EBITDA margin
Strong reduction in Opex (over 1.5 bln € reduction in the year)
Delivering 2009 EBITDA Target (Stable vs. 2008)
Figures considering HanseNet classified as Discontinued Operations
6
Organic OPEX 2009
Cash Cost Control: a Group-Wide Commitment
Euro mln, Organic data, %
EBITDA Margin
Figures considering HanseNet classified as Discontinued Operations
Δ abs. vs. 2008
Δ %. vs. 2008
Δ %. 9M09 vs. 9M08 2008 2009
TI Media -17 -6.6% -17.4%
-3.9%+13.5 p.p.
239 -10.6%
TIM Brasil -127 -3.3%
23.4%25.7%
+2.3 p.p.3,733 -2.0%
Other BU & Eliminations -57276
TI Group -1,573 -9.0%39.5%
41.7%+2.2 p.p.15,853 -7.2%
Domestic -1,372 -10.6%+2.3 p.p.44.2%
46.5%
11,605 -8.4%
7
Group Cash Cost Control to improve Operating Cash Flow Euro mln, Organic data, %
(*) 477M€ Brazilian license Fee in 2008 excluded
Domestic Cash Cost
15,12816,635
CAPEX
-10.6%OPEX
-135
-1,372
Domestic Cash Cost on Revenues (%)
71.5%
69.8%
-3.7%
-1,507 -9.1%-1,593 -7.2%
- 1.3 p.p.
TI Group Cash Cost
20,39621,989
-0.4%
-9.0%
-20
-1,573
TI Group Cash Cost on Revenues (%)
76.3%
75.0%
Of which:Domestic -1,372Brazil -127
2008 2009
2008 2009
2008 2009
2008 2009
- 1.7 p.p.
CAPEX (*)
OPEX
4,563
17,426 15,853
4,543 3,658
12,977 11,605
3,523
8Target 08-09:
~ -5.0
Main achievements 2009 – Progress on Cash Cost Rationalization
25
Focus on Efficiency Program
311
149Organization &Support process
InformationTechnology
Total
Sales & Distribution
Network Operations
311
149
-2
66
896
Delivery & Assurance
Buildings andEnergy Mng
CustomerOperations
264
45
63
12
66
27
42
o/wOpex
632
Cash Cost
Headcount Reduction
Target 08-09:~ -5.0
2007 2009
58.464.1 -5.7
1
2
3
4
5
7
6
Euro mln, Organic data, %
2008 2009Efficiency Volume Driven
0,0
-45316,635
15,128
-1,507
-896
-158
HandsetsMobile: -378
Intercon-nection
% on Rev. -1.7 p.p.71.5% 69.8%
‘000
9
Net Income EvolutionEuro mln
11,327
EBITDAOrganic
(212)
Non OrganicItems
11,115
EBITDAReported
(5,622)
Deprec. /Amortiz.*
(2,154)
Net Interest &Net Income
/Equity
3,339
IncomeBefore Taxes& Disc.Ops.
(1,121)
Taxes
(622)
Net Incomeof assetsdisposed
Net Income
1,581
Minorities2009
(15)
Δ vs. FY
2008
HanseNet GW Writedown/ProvisionsHanseNet Net IncomeOther provisions
(597)(23)
(2)
-0.5% +0.2% +15.4%-26.6% -0.5% -15.3% +65.6% -27.4%
* Including gains/losses of non current assets realization
10
Agenda
TI Group Main Achievements
Focus on Domestic Business
Focus on TIM Brasil
Appendix
11
Domestic – Steady Cost Control Offsetting Revenues Decline
Revenues EBITDA
Euro mln, Organic data, %
Fixed business:
Reduction in line losses
Push on BB flat offers
Increase in ICT market share
Mobile business:
Strong reduction in handsets sales (IVQ09 -59% YoY)
Weak Mobile Service revenues due to loss of market share
Strong pick-up of mobile browsing bundle package
Mobile
Wireline
2008
23,262
15,035
9,687
2009
21,679
14,756
8,597
-1,583 mln €-6.8%
-11.3%
-1.9%
Service revenues-8.1%
Service revenues-1.4%
2008
23,262
IIIQ
IVQ
IIQ
IQ
-211 mln €-2.1%
44.2%46.5%+2.3 p.p.
2008 2009
10,285 10,074
-0.7%
-4.4%
-0.4%
-2.8%
2,5422,658
2,5502,568
2,6762,687
2,372 2,306
Outperformed the 2009EBITDA Target of 9.9-10 bln €
% on Revenues
12
Domestic Fixed – TI Access Performance
Telecom Italia Retail Access Evolution & Line Losses Key Highlights
OLO Access Growth (TI Wholesale)
ULL Naked WLR
4Q08 1Q09 2Q09 3Q09 4Q08 1Q09 2Q09 3Q09 4Q08 1Q09 2Q09 3Q09
‘000
+268
‘000 ‘000
4Q09 4Q09 4Q09
104 122 10856 42
TI Access
Line losses
Lowest line losses level since third quarter 2007 through successful retention activities and new integrated/bundled offers (Intenet+Voce, Voce senza limiti)
Significant reduction of disconnections (1,254k line losses in 2009 vs. 1,861k in 2008)
4Q08 1Q09 2Q09 3Q09
‘000
‘000
17,352 16,972 16,621 16,358 16,097
4Q09
4Q08 1Q09 2Q09 3Q09 4Q09
‘000 access
13
Domestic Fixed: Focus on BB & ICT
6,754
Flat (%)
Free
79% 81%
6,843
+79
Broadband Service Revenues
TI retail accesses
IQ
IIQ
1,490 1,608
+7.4%
+8.2%
81%77%
6,859
Broadband Market
6,921
IIIQ +8.1%
18.318.0ARPU BB
BB Serv Revs
Total Italian BB accesses 11,164 12,29411,968
‘000
+7.9%
Euro mln, Euro/month
4Q08 1Q09 2Q09 3Q09
Focus Telecom Italia ICT Revenues
+9.5%
759 831 +13.8%
448510
Service Revenues
Italian ICT Market (Top Clients)
Euro mln
83%
4Q09
7,000
2008 2009
+8.0%
2008 2009 2008 2009
-6.7%7.5
7.0
TI Market Share on ICT
Revenues9.2%
11.4%+2.2 p.p.
Euro bln
2008 2009
IVQ
14
Domestic Mobile - 2009 Main Facts
Strong reduction of inactive SIM
Market share loss mainly in the cost conscious segment as a results of re-pricing
Weak service revenues performance due to lower customer base, MTR reduction, strong decrease of content VAS and SMS
Good take-up of Mobile BB offers and leadership on Smart phones partially offset by handset driven revenues (Try&Buy ) decline
Customer Base Mobile mln SIM
Key Highlights
34.8
30.9
2008 2009
-11%
(*) SIM Human that generate/receive calls/browsing in the last 30 days
Mobile BB –Revenues**
+19.6%
2008 2009
652
545
(**) Revenues normalized excluding promotion related to device sales
Euro mln
-4% calling*
15
Domestic Mobile RevenuesEuro mln
(*) Incoming, Visiting and Other Revenues
Total
Handsets
VAS
Business Received *
OutgoingVoice
FY 08 FY 09 % YoY
9,687 8,597
860 482
(11.3)
(44.0) (3.9)
4,969 4,583
1,5111,684
2,173 2,022
(7.8)
(10.3)
(6.9)
(4.0)
(1.8)
(1.6)
=
+
+
+
Δ
16
Agenda
TI Group Main Achievements
Focus on Domestic Business
Focus on TIM Brasil
Appendix
17
Most innovative Brand on the Market: more than 20 million Infinity clients in 9 months
Improved Top of Mind and Customer Satisfaction Index in all Consumer Segments
100% of Anatel Network Quality targets reached in December (and January); Overall #2 in Quality in 2009
ARPU Leader in Brazil
Consistent increase of Customer Base (+4.7 mln lines vs. 2009), able to offset 2008 re-pricing impact
Stabilized Market Share after 18 months of continuous erosion
#2 Brazilian mobile operator in terms of Value Market Share (26% share in Service Revenues) and Profitability (exceeding 29% in Q409)
Service Revenues: Consistent QoQ growth with positive performance YoYin H2, resulting in a flat ‘09FY vs. ‘08FY
Organic EBITDA : +9.6% YoY in line with 2009 target (3.6 bln R$ in 2009)
Organic EBITDA Margin : 25.7% FY 2009 (29.5% in Q409);
+230 basis points YoY
Net Income: +0.3 bln R$ FY09; +57% YoY
Operating FCF: +0.6 bln R$ FY09
TIM Brasil FY09 - Main Achievements
KPIsimprovement
Financials
Brand and Quality recovery
Recovery of Premium
Positioning and Brand Value
Back to Customer Base
Growth
Confirmed Structural
Profitability Growth
18
TIM Brasil - Main Organic Results
EBITDA
Revenues
324
254 304
328
387409
+112M€+9.6%
23.4% +2.3 p.p.% on Revenues
IIQ
IQ
+20.1%
+20.7%
1,1771,289
25.7%
-2.0%IIIQ
2008 2009
IVQ
208 252
+5.4%
Reduced push on handsets
Value Added Services fuelled by micro-browsingtrough to exclusive offers of Smartphone
Ebitda margin increase driven by:Lower bad debtContinued cash cost efficienciesImproved revenue mix
Key Highlights
(*) 98 million reais reclassified from “Other Operating Income” to “Other Service Revenues”No EBITDA impact. No reclassification of previous year needed at TI Group level
Delivering 2009 Ebitda Target
Service RevenuesEuro mln, %
+0.1%
-1.6%
-0.5%
+1.4%
IQ
IIQ
IIIQ
IVQ
4,646 4,640*-6M€-0.1%
2008 2009
-1.2%
Euro mln, %
5,037 5,022*
IQ
+3.4%
+0.7%
IIQ
-15M€-0.3%
IIIQ
2008 2009
IVQ -3.7%
1,054 1,061
1,198 1,238
1,336 1,323
1,449 1,400
996 991
1.115 1.097
1.217 1.218
1.318 1.334
19
Agenda
TI Group Main Achievements
Focus on Domestic Business
Focus on TIM Brasil
Appendix
20
FY
Focus on TI Sparkle Provision
No Impact on 2008-2009 Revenues and Ebitda 2008-2009 Net Income impacted by €10 mln of Annual Financial Charges
Euro mln
2005-2007 Revenues and Commercial Margin Restatement
CommercialMargin
Revenues
-1,246
-169
Cum.’07-’05
FY ‘07
-754FY ‘06
FY ‘05 -323
-13
-47
-12
-72403
507
VAT*
32
Interests
72
Commercial Margin
TotalProvision
* Includes Penalties
TI Sparkle Provision 2005-2009
FY ’07: 70 FY ’06: 256 FY ’05: 77
21
FY
Focus on TI Sparkle Provision: Breakdown
RESTATEMENT
Euro mln
2005 2006 2007 2008 2009CUM.
2005-2009
Revenues (323) (754) (169) 0 0 (1,246)
Ebitda (89) (303) (83) 0 0 (475)
Ebit (89) (303) (83) 0 0 (475)
Interests 0 (4) (8) (10) (10) (32)
Net Income (post Minorities) (89) (307) (91) (10) (10) (507)
Operating Free Cash Flow 0 0 0 0 0 0
Free Cash Flow 0 0 0 0 0 0
Net Financial Position 0 0 0 0 0 0
Equity (89) (396) (487) (497) (507) (507)
Risks Funds 89 396 487 497 507 507
22
FY
Revenues EvolutionEuro mln
(*) Exchange rate (Real/Euro): 2.77 in 2009, 2.68 in 2008.
Media (69)Bolivia (52)Elimination +63
(58) (17)28,80529,000 (161) +24 (1,583) (15) +12 (1) (38) 27,180 27,163
(*)FY08 Change inconsolid.
area
ExchangeRate Impact
Other nonorganicitems
FY08Organic
Domestic MobileBrazil
Media Olivetti Other &Elim.
FY09Organic
Other nonorganicitems
FY09
Domestic +11Brazil (171)Olivetti (1)
IV Quarter-1,837 (-6.3%)
7,480 (3) 209 0 7,686 (663) (49) 31 (29) (11) 6,97510 6,986
Organic VariationFY 09
-1,625 (-5.6%)
-700 (-9.1%)
-505 (-6.8%)
23
FY
EBITDA Evolution
Media +21Bolivia (24)
Mobility under Law 223/91 related to Reduction Plan announced on June 4th 2008 +292Agreement with OLO and provisions for legal disputes +34Other + 3
Agreement with OLO and provisions for legal disputes (154)Agreement with OLO in Brazil (22)Other (36)
36.0%
35.6% 38.8%
37.1%
2,692 4 43 (6) 2,733 (66) 7 11 2,713 2,589(124)22 6
Brazil (40)Domestic +3
+329(37)(3) 11,327+7+11+29+112(211) 11,115(212)11,37911,090
40.9%41.7%39.5%38.2%
Organic VariationFY 09
-52 (-0.5%)
+25 (+0.2%)
-20 (-0.7%)
-103 (-3.8%)
IV Quarter
FY08 Change inconsolid.
area
ExchangeRate Impact
Other nonorganicitems
FY08Organic
Domestic MobileBrazil
Media Olivetti Other &Elim.
FY09Organic
Other nonorganicitems
FY09(*)
Euro mln
(*) Exchange rate (Real/Euro): 2.77 in 2009, 2.68 in 2008.
24
FY
EBIT Evolution
Agreement with OLO and provisions for legal disputes (154)Loss on disposal and intagible assets (50)Agreement with OLO in Brazil (22)Other (42)
17.3%
16.7%
17.2%
19.1%
1,292 5 0 (16) 1,281 13 6 7 1,331 1,2008 16 (131)
Organic VariationFY 09
5,4375,732 (268)+6 (5) +294 (93) +60 +30 +13 +19 5,761 5,493
18.7% 21.2% 20.2%19.9%
Media +23Bolivia (17)
Mobility under Law 223/91 related to Reduction Plan announced on June 4th 2008 +292Agreement with OLO and provisions for legal disputes +34Gain on Real Estate disposal and PPV disposal (34)Other + 2
Domestic +1Brazil (6)
area items items
Organic VariationFY 09
+29 (+0,5%)
+56 (+1.0%)
+50 (+3.9%)
-92 (-7.1%)
IV Quarter
FY08 Change inconsolid.
ExchangeRate Impact
Other nonorganic
FY08Organic
Domestic MobileBrazil
Media Olivetti Other &Elim.
FY09Organic
Other nonorganic
FY09(*)
Euro mln
(*) Exchange rate (Real/Euro): 2.77 in 2009, 2.68 in 2008.
25
FY
Net Debt Dynamics
+708
2008YE
34,039
Adj. forFair
valuevaluation of
derivatives and related
underlyings
+487
Adj. forFair
valuevaluation of
derivatives andrelated
underlyings
+798
2009YE
34,747
+1,839 Income Taxes+248 Tax Litigation+214 Substitutive Tax
+2,225 Cash Financial Expenses(206) Financial Accruals
o/w+52 Disc. Ops. HanseNet
(577)
CashTaxes
+2,301
2008YEAdjusted
34,526
OperatingFCF
(6,298)
Disposals
(53)
Cash Financial Expenses / Financial Accruals
+2,019
Dividends
+1,050
2009YEAdjusted
33,949
Other
Impacts
+339
Financial Investments /
Buy Back
+65
(5,636) +456+2,102 34,526(662) (117)(83)
2007YE
Δ vs. 0835,873 +1,665
(615)+633
+1,668
2008YE (1,347)(599)+546
(*) o/w+202 Disc. Ops.
HanseNet(*)+32
+32
Euro mln
26
FY
Group Liquidity Matches 2010 – 2011 Maturities Bonds Loans (of which long-term rent, financial and operating lease payable 1,797 € mln) Drawn bank facility
€ 7.3 bln Group Liquidity Position
+€ 6.5 bln
Undrawn Portion of€ 8 bln Facility
=€ 13.8 bln
Group Liquidity Margin
12,755
29,106
1,500
3,000
799
1,036
449
1,056
4,052
8,784
FY 2010 FY 2011 FY 2012 FY 2013 Beyond 2014 Total M/L Term Debt
5,378
4,935
3,699
4,444
16,807 40,890 *
FY 2014
1,392
2,735
5,627
3,388
3,250
4,136
2,842
1,500
* € 40,890 mln is the nominal amount of outstanding medium-long term debt : by adding IAS adjustments (919 mln €, not considering 1,417 mln € due to interest rates impact on derivatives valuation), current liabilities (€ 512 mln) and HanseNet intercompany/other debt accounted for as discontinued operations (€ 659 mln) gross debt figure of €42,980 mln is reached.
N.B. Debt maturities are net of € 180 mln (face value) of repurchased own bonds (TI Spa € 850 mln 5.25 % Notes due 2055), € 77 mln (face value) of repurchased owns bonds (TI Spa € 750 mln 4.75 % Notes due 2014), € 54 mln of repurchased own bonds (TI Spa € 850 mln Notes due 2010), € 20 mln of repurchased own bonds (TIF € 139 mln 4.629% Notes due 2010), € 35 mln (face value) of repurchased own bonds (TIF € 1,050 mln 7.75 % Notes due 2033), and € 3 mln (face value) of repurchased own bonds (TIF € 2,000 mln, 7.50 % Notes due 2011)
1H 2HBonds 2,356 486Drawn bank facility 1,500Loans 316 720
4,172 1,206
Euro mln
27
FY
TI Group – Profit and Loss by Quarters - ReportedI Quarter II Quarter III Quarter IV Quarter Full Year
Euro mln2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ %
REVENUES 6.527 6.996 (469) (6,7) 6.897 7.251 (354) (4,9) 6.764 7.273 (509) (7,0) 6.975 7.480 (505) (6,8) 27.163 29.000 (1.837) (6,3)
Other Operating Income 54 89 (35) (39,3) 82 62 20 32,3 48 64 (16) (25,0) 98 121 (23) (19,0) 282 336 (54) (16,1)
TOTAL REVENUES & OTHER INCOME 6.581 7.085 (504) (7,1) 6.979 7.313 (334) (4,6) 6.812 7.337 (525) (7,2) 7.073 7.601 (528) (6,9) 27.445 29.336 (1.891) (6,4)
Total Purchases of materials and external service (2.635) (2.955) 320 (10,8) (2.965) (3.263) 298 (9,1) (2.762) (3.235) 473 14,6 (3.118) (3.667) 549 15,0 (11.480) (13.120) 1.640 12,5
Personnel (966) (964) (2) 0,2 (937) (1.257) 320 (25,5) (834) (867) 33 3,8 (997) (1.026) 29 2,8 (3.734) (4.114) 380 9,2of which payroll (950) (942) (8) 0,8 (912) (936) 24 (2,6) (834) (844) 10 1,2 (968) (980) 12 1,2 (3.664) (3.702) 38 1,0
Other operating costs (348) (441) 93 (21,1) (382) (409) 27 (6,6) (348) (386) 38 9,8 (538) (395) (143) (36,2) (1.616) (1.631) 15 0,9
Capitalized Cost and Others 107 158 (51) (32,3) 113 120 (7) (5,8) 111 162 (51) (31,5) 169 179 (10) (5,6) 500 619 (119) (19,2)
EBITDA 2.739 2.883 (144) (5,0) 2.808 2.504 304 12,1 2.979 3.011 (32) (1,1) 2.589 2.692 (103) (3,8) 11.115 11.090 25 0,2% on Revenues 42,0% 41,2% 40,7% 34,5% 44,0% 41,4% 37,1% 36,0% 40,9% 38,2%Depreciation & Amortization (1.387) (1.413) 26 (1,8) (1.412) (1.433) 21 (1,5) (1.379) (1.426) 47 3,3 (1.373) (1.404) 31 2,2 (5.551) (5.676) 125 2,2
Writedowns/revaluations of non current assets 0 0 0 - (48) (1) (47) n.m. 48 (5) 53 - (12) (6) (6) (100,0) (12) (12) 0 0,0
Gains/losses of non current assets realization 2 25 (23) (92,0) (17) 1 (18) - (40) (1) (39) n.m. (4) 10 (14) - (59) 35 (94) -
EBIT 1.354 1.495 (141) (9,4) 1.331 1.071 260 24,3 1.608 1.579 29 1,8 1.200 1.292 (92) (7,1) 5.493 5.437 56 1,0% on Revenues 20,7% 21,4% 19,3% 14,8% 23,8% 21,7% 17,2% 17,3% 20,2% 18,7%
Income (loss) equity invest. valued equity method 14 20 (6) 19 17 2 16 16 0 18 11 7 67 64 3
Other income ( expenses ) from investments 6 0 6 (40) 2 (42) 0 0 0 (17) 2 (19) (51) 4 (55)
Net Financial Income / (Expenses) (583) (595) 12 (500) (615) 115 (557) (741) 184 (530) (660) 130 (2.170) (2.611) 441
Income before Taxes & Discontinued Op. 791 920 (129) 810 475 335 1.067 854 213 671 645 26 3.339 2.894 445% on Revenues 12,1% 13,2% 11,7% 6,6% 15,8% 11,7% 9,6% 8,6% 12,3% 10,0%
Taxes (341) (384) 43 (307) 221 (528) (321) (357) 36 (152) (157) 5 (1.121) (677) (444)
Income before Discontinued Op. 450 536 (86) 503 696 (193) 746 497 249 519 488 31 2.218 2.217 1
Net income (loss) of assets disposed (9) (73) 64 (9) (80) 71 (541) 120 (661) (63) (6) (57) (622) (39) (583)
Net Income (ante Minorities) 441 463 (22) 494 616 (122) 205 617 (412) 456 482 (26) 1.596 2.178 (582)% on Revenues 6,8% 6,6% 7,2% 8,5% 3,0% 8,5% 6,5% 6,4% 5,9% 7,5%
Minorities 19 19 0 4 13 (9) (6) 7 (13) (32) (40) 8 (15) (1) (14)
Net Income (post Minorities) 460 482 (22) 498 629 (131) 199 624 (425) 424 442 (18) 1.581 2.177 (596)% on Revenues 7,0% 6,9% 7,2% 8,7% 2,9% 8,6% 6,1% 5,9% 5,8% 7,5%
28
FY
TI Group - Main Results by BU - by Quarter - ReportedEuro mln I Quarter II Quarter III Quarter IV Quarter Full Year
REVENUES2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ %
Domestic 5.357 5.600 -243 (4,3) 5.534 5.791 -257 (4,4) 5.342 5.728 -386 (6,7) 5.429 6.108 -679 (11,1) 21.662 23.227 -1.565 (6,7)Wireline Domestic 3.677 3.746 -69 (1,8) 3.724 3.739 -15 (0,4) 3.563 3.643 -80 (2,2) 3.775 3.872 -97 (2,5) 14.739 15.000 -261 (1,7)Tim Domestic 2.059 2.217 -158 (7,1) 2.253 2.424 -171 (7,1) 2.184 2.444 -260 (10,6) 2.101 2.602 -501 (19,3) 8.597 9.687 -1.090 (11,3)
Mobile Brasile 1.061 1.224 -163 (13,3) 1.238 1.313 -75 (5,7) 1.323 1.436 -113 (7,9) 1.400 1.235 165 13,4 5.022 5.208 -186 (3,6)Media 51 74 -23 (31,1) 63 74 -11 (14,9) 48 62 -14 (22,6) 68 77 -9 (11,7) 230 287 -57 (19,9)Olivetti 71 83 -12 (14,5) 82 97 -15 (15,5) 66 72 -6 (8,3) 131 100 31 31,0 350 352 -2 (0,6)Other Activities 39 96 -57 (59,4) 41 43 -2 (4,7) 37 37 0 0,0 41 42 -1 (2,4) 158 218 -60 (27,5)
Bolivia 0 52 -52 (100,0) 0 0 0 - 0 0 0 - 0 0 0 - 0 52 -52 (100,0)Elim. -52 -81 29 35,8 -61 -67 6 9,0 -52 -62 10 16,1 -94 -82 -12 (14,6) -259 -292 33 11,3TI Group 6.527 6.996 -469 (6,7) 6.897 7.251 -354 (4,9) 6.764 7.273 -509 (7,0) 6.975 7.480 -505 (6,8) 27.163 29.000 -1.837 (6,3)
I Quarter II Quarter III Quarter IV Quarter Full Year
EBITDA2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ %
Domestic 2.526 2.644 -118 (4,5) 2.518 2.253 265 11,8 2.668 2.676 -8 (0,3) 2.183 2.386 -203 (8,5) 9.895 9.959 -64 (0,6)Mobile Brasile 231 242 -11 (4,5) 296 279 17 6,1 322 354 -32 (9,0) 406 342 64 18,7 1.255 1.217 38 3,1Media -5 -21 16 76,2 -1 -14 13 92,9 0 -10 10 - -3 -14 11 78,6 -9 -59 50 84,7Olivetti -9 -7 -2 (28,6) -3 -5 2 40,0 -6 -11 5 45,5 4 -7 11 - -14 -30 16 53,3Other Activities -1 27 -28 - 1 0 1 - -4 1 -5 - -2 -9 7 77,8 -6 19 -25 -
Bolivia 0 24 -24 (100,0) 0 0 0 - 0 0 0 - 0 0 0 - 0 24 -24 (100,0)Elim. -3 -2 -1 (50,0) -3 -9 6 66,7 -1 1 -2 - 1 -6 7 - -6 -16 10 62,5TI Group 2.739 2.883 -144 (5,0) 2.808 2.504 304 12,1 2.979 3.011 -32 (1,1) 2.589 2.692 -103 (3,8) 11.115 11.090 25 0,2EBITDA MARGIN 42,0% 41,2% 0,8 pp 40,7% 34,5% 6,2 pp 44,0% 41,4% 2,6 pp 37,1% 36,0% 1,1 pp 40,9% 38,2% 2,7 pp
I Quarter II Quarter III Quarter IV Quarter Full Year
EBIT2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ %
Domestic 1.392 1.543 -151 (9,8) 1.319 1.102 217 19,7 1.587 1.542 45 2,9 1.096 1.218 -122 (10,0) 5.394 5.405 -11 (0,2)Mobile Brasile -5 -17 12 70,6 42 15 27 180,0 48 73 -25 (34,2) 124 118 6 5,1 209 189 20 10,6Media -20 -37 17 45,9 -27 -32 5 15,6 -15 -24 9 37,5 -18 -20 2 10,0 -80 -113 33 29,2Olivetti -10 -9 -1 (11,1) -5 -7 2 28,6 -7 -12 5 41,7 3 -9 12 - -19 -37 18 48,6Other Activities -6 13 -19 - -5 -5 0 0,0 -9 -6 -3 (50,0) -14 -17 3 17,6 -34 -15 -19 (126,7)
Bolivia 0 17 -17 (100,0) 0 0 0 - 0 0 0 - 0 0 0 - 0 17 -17 (100,0)Elim. 3 2 1 50,0 7 -2 9 - 4 6 -2 (33,3) 9 2 7 350,0 23 8 15 187,5TI Group 1.354 1.495 -141 (9,4) 1.331 1.071 260 24,3 1.608 1.579 29 1,8 1.200 1.292 -92 (7,1) 5.493 5.437 56 1,0EBIT MARGIN 20,7% 21,4% -0,7 pp 19,3% 14,8% 4,5 pp 23,8% 21,7% 2,1 pp 17,2% 17,3% -0,1 pp 20,2% 18,7% 1,5 pp
29
FY
TI Group - Main Results by BU - by Quarter - OrganicEuro mln I Quarter II Quarter III Quarter IV Quarter Full Year
REVENUES2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ %
Domestic 5.357 5.607 -250 (4,5) 5.534 5.821 -287 (4,9) 5.348 5.731 -383 (6,7) 5.440 6.103 -663 (10,9) 21.679 23.262 -1.583 (6,8)Wireline Domestic 3.677 3.753 -76 (2,0) 3.724 3.769 -45 (1,2) 3.569 3.646 -77 (2,1) 3.786 3.867 -81 (2,1) 14.756 15.035 -279 (1,9)Tim Domestic 2.059 2.217 -158 (7,1) 2.253 2.424 -171 (7,1) 2.184 2.444 -260 (10,6) 2.101 2.602 -501 (19,3) 8.597 9.687 -1.090 (11,3)
Mobile Brasile 1.061 1.054 7 0,7 1.238 1.198 40 3,4 1.323 1.336 -13 (1,2) 1.400 1.449 -49 (3,7) 5.022 5.037 -15 (0,3)Media 51 49 2 4,1 63 61 2 3,3 48 50 -2 (4,0) 68 58 10 17,2 230 218 12 5,5Olivetti 71 83 -12 (14,5) 82 96 -14 (14,6) 66 72 -6 (8,3) 131 100 31 31,0 350 351 -1 (0,3)Other Activities 39 44 -5 (11,4) 41 43 -2 (4,7) 37 37 0 0,0 41 42 -1 (2,4) 158 166 -8 (4,8)
Bolivia 0 0 0 - 0 0 0 - 0 0 0 - 0 0 0 - 0 0 0 -Elim. -52 -57 5 8,8 -61 -54 -7 (13,0) -52 -52 0 0,0 -94 -66 -28 (42,4) -259 -229 -30 (13,1)TI Group 6.527 6.780 -253 (3,7) 6.897 7.165 -268 (3,7) 6.770 7.174 -404 (5,6) 6.986 7.686 -700 (9,1) 27.180 28.805 -1.625 (5,6)
I Quarter II Quarter III Quarter IV Quarter Full Year
EBITDA2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ %
Domestic 2.542 2.658 -116 (4,4) 2.550 2.568 -18 (0,7) 2.676 2.687 -11 (0,4) 2.306 2.372 -66 (2,8) 10.074 10.285 -211 (2,1)Mobile Brasile 252 208 44 20,7 304 254 50 20,1 324 328 -4 (2,0) 409 387 22 5,4 1.289 1.177 112 9,6Media -5 -15 10 66,7 -1 -9 8 88,9 0 -4 4 - -3 -10 7 70,0 -9 -38 29 76,3Olivetti -9 -7 -2 (28,6) -3 -5 2 40,0 -6 -11 5 45,5 4 -2 6 - -14 -25 11 44,0Other Activities -1 3 -4 - 1 0 1 - -4 1 -5 - -3 -9 6 66,7 -7 -5 -2 (40,0)
Bolivia 0 0 0 - 0 0 0 - 0 0 0 - 0 0 0 - 0 0 0 -Elim. -3 -2 -1 (50,0) -3 -9 6 66,7 0 1 -1 (100,0) 0 -5 5 - -6 -15 9 60,0TI Group 2.776 2.845 -69 (2,4) 2.848 2.799 49 1,8 2.990 3.002 -12 (0,4) 2.713 2.733 -20 (0,7) 11.327 11.379 -52 (0,5)EBITDA MARGIN 42,5% 42,0% 0,5 pp 41,3% 39,1% 2,2 pp 44,2% 41,8% 2,4 pp 38,8% 35,6% 3,2 pp 41,7% 39,5% 2,2 pp
I Quarter II Quarter III Quarter IV Quarter Full Year
EBIT2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ % 2009 2008 Δ Abs Δ %
Domestic 1.408 1.530 -122 (8,0) 1.400 1.417 -17 (1,2) 1.585 1.552 33 2,1 1.218 1.205 13 1,1 5.611 5.704 -93 (1,6)Mobile Brasile 16 -15 31 - 50 13 37 - 50 66 -16 (27,0) 127 119 8 6,5 243 183 60 33,1Media -20 -31 11 35,5 -16 -26 10 38,5 -15 -18 3 16,7 -18 -24 6 25,0 -69 -99 30 30,3Olivetti -10 -9 -1 (11,1) -5 -7 2 28,6 -7 -12 5 41,7 3 -4 7 - -19 -32 13 40,6Other Activities -6 -4 -2 (50,0) -5 -5 0 0,0 -9 -6 -3 (50,0) -8 -17 9 52,9 -28 -32 4 12,5
Bolivia 0 0 0 - 0 0 0 - 0 0 0 - 0 0 0 - 0 0 0 -Elim. 3 2 1 50,0 7 -2 9 - 4 6 -2 (33,3) 9 2 7 350,0 23 8 15 187,5TI Group 1.391 1.473 -82 (5,6) 1.431 1.390 41 2,9 1.608 1.588 20 1,3 1.331 1.281 50 3,9 5.761 5.732 29 0,5EBIT MARGIN 21,3% 21,7% -0,4 pp 20,7% 19,4% 1,3 pp 23,8% 22,1% 1,7 pp 19,1% 16,7% 2,4 pp 21,2% 19,9% 1,3 pp